[DannyTN]

"The second big improvement for an economy is that if you are spending 50 cents for socks rather than $2, then the economy can 'spend' the $1.50 savings doing other, more productive things. Whether it's starting a new business, taking a vacation, buying new tools, or even just slapping a new coat of paint on the house... all that freed-up capital enriches the economy which helps everyone. "

Yes, you can spend the $1.50 savings on unemployment for the people that are now out of work. That's is so much better. And since Probably $1.70 of the original $2 price was labor, government income tax revenues just fell $0.34. So now after you've paid for their unemployment, you can higher taxes to make up for the government shortfall. That's so much better!!!!

[DB]

You assume a static model that has only so much pie.

Wealth comes from making more pie. Not by how you divide some fixed amount of pie.